Chapter 3.32
LOCAL IMPROVEMENT GUARANTY FUND

Sections:

3.32.010    Generally.

3.32.020    Tax levy authority.

3.32.030    Defaulted interest coupon, bond, or warrant – Payment.

3.32.040    Warrant issuance for accrued liability.

3.32.050    Payment of interest and surplus into fund.

3.32.060    Liability of City – Remedy.

Stat. Ref.: For provisions on local improvement guaranty funds, see Chapter 35.54 RCW; for provisions making Chapter 35.54 applicable to code cities, see RCW 35A.43.010.

3.32.010 Generally.

In accordance with Chapter 141, Laws of 1923, and Acts amendatory thereof, being Chapter 35.54 RCW, the City establishes and creates a fund for the purpose of guaranteeing, to the extent of such fund, the payment of its bonds and warrants issued to pay for any local improvement ordered in Local Improvement District No. 8, heretofore created, and in any local improvement districts in the City created subsequent to the effective date of the ordinance codified in this chapter. This fund shall be known and designated as Local Improvement Guaranty Fund. (Ord. 723 § 1, 1959).

3.32.020 Tax levy authority.

After the passage of the ordinance codified in this chapter, there shall be levied, from time to time as other taxes are levied, such sums as may be necessary to meet the financial requirements of the Local Improvement Guaranty Fund created by this chapter. Whenever the City shall have paid out of the Guaranty Fund any sum on account of principal and interest on a local improvement bond or warrant guaranteed under the provisions of this chapter, the City, as Trustee for such fund, shall be subrogated to all of the rights of the holder of the bond, interest coupon or warrant so paid; and the proceeds thereof, or of the underlying assessments, shall become a part of the fund. (Ord. 723 § 2, 1959).

3.32.030 Defaulted interest coupon, bond, or warrant – Payment.

Whenever any interest coupon, bond, or warrant guaranteed under the provisions of the laws of the State in pursuance of the ordinance codified in this chapter is passed shall be in default, the City Clerk is authorized and directed, upon the presentation and delivery of such defaulted bond, coupon or warrant, to execute, sign and deliver to the person or persons presenting the same, in the order of their presentation, and the Treasurer shall honor and pay, a warrant on the Local Improvement Guaranty Fund in such amount as may be necessary to pay in full any such coupon, bond or warrant with any interest that may be due thereon. Any defaulted coupon, bond, or warrant received by the City Clerk under the provisions of this chapter shall be held for the benefit of the Local Improvement Guaranty Fund. (Ord. 723 § 3, 1959).

3.32.040 Warrant issuance for accrued liability.

Warrants drawing interest at a rate not to exceed 6 percent shall be issued, as other warrants are issued by the City, against the Local Improvement Guaranty Fund to meet any liability accruing against it; and at the time of making its annual budget and tax levy, the City shall provide for the levying of a sum sufficient, with the other resources of the fund, to pay warrants so issued during the preceding fiscal year. Such warrants shall at no time exceed 5 percent of the outstanding bond obligations guaranteed by the fund. (Ord. 723 § 4, 1959).

3.32.050 Payment of interest and surplus into fund.

The City Treasurer is authorized and directed to pay into such Local Improvement Guaranty Fund all interest received from bank deposits of the fund, as well as any surplus remaining in any Local Improvement District Fund guaranteed under the State Laws after the payment of all outstanding bonds or warrants payable primarily out of such Local Improvement District Fund. (Ord. 723 § 5, 1959).

3.32.060 Liability of City – Remedy.

Neither the owner nor the holder of any bond, interest coupon, or warrant issued against a Local Improvement Fund after the passage of the ordinance codified in this chapter shall have any claim therefor against the City, except for payment from the special assessments made for the improvement for which the bond or warrant was issued, and except as against the Local Improvement Guaranty Fund created by this chapter; and the City shall not be liable to any holder or owner of such bond, interest coupon, or warrant for any loss to the Guaranty Fund occurring in the lawful operation thereof by the City. The remedy of the holder or owner of a bond or warrant in case of nonpayment shall be confined to the enforcement of the assessment and to the guaranty fund. A copy of RCW 35.45.070, the provisions of which are included in this section, shall be plainly written, printed, or engraved on each bond issued and guaranteed under the provisions of this chapter. (Ord. 723 § 6, 1959).